Chinese telecom giants Huawei along with ZTE face market pressures amid US scrutiny

The Chinese company stopped trading April 17 after the U.S. banned American companies via selling components to ZTE for seven years. The decision was made in response to the company’s violation of U.S. sanctions against Iran along with North Korea. ZTE pleaded guilty last year.

The company then delayed its first-quarter earnings report along with board meeting, planned for April 19.

When the item finally released results on Friday, ZTE said consolidated net profit attributable to ordinary shareholders surged 39 percent to 1.69 billion yuan.

nevertheless ZTE said the U.S. ban “has material adverse effects on the normal production along with operation of the Company” along with the item can be “unable to prepare the 2018 First Quarterly Report in accordance with the accounting standards for business enterprises.”

The shares remained halted along with the stock can be down 12.78 percent for the year. The company incorporates a market capitalization of 153.8 billion Hong Kong dollars ($19.6 billion).

Both ZTE along with Huawei have also become major smartphone manufacturers.

In 2017, Huawei ranked third in global smartphone shipments, behind Samsung along with Apple, according to Strategy Analytics. Third-quarter data showed ZTE was the fourth-largest vendor inside U.S. by smartphone shipments.

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